Bitcoin (BTC) Drops Below $75,000 as Hot US Inflation Data Sparks Fed Rate Hike Fears

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. While the crypto community was enjoying Bitcoin at $75,000 and expecting new highs, the U.S. economy released figures that forced many participants in the crypto market to quickly reassess. The issue was not a technical failure but the fact that inflation in the United States decided to stage a second round. Advertisement Speaking about the numbers that spoiled the party for the bulls, U.S. producer price data for March came in truly hot — the PPI index jumped by 0.7% against a forecast of 0.3%. This is the sharpest increase since last summer. The annual PPI reading rose to 3.4%, giving the market a clear signal that price pressure has not gone anywhere. How latest PPI jump could reshape Bitcoin’s 2026 path For Bitcoin , this is the worst-case scenario because it completely destroys the illusion of a soft landing at the moment and of imminent rate cuts. Instead of flooding the market with cheap money, the Federal Reserve will now be forced to think about whether it may need to raise rates again. HOT Stories XRP Sees 160% Tilt in Bull Bias Among Hyperliquid's Biggest Whales, Ethereum Open Interest Hits 'High-Risk' Levels, Bitcoin Decouples From Gold In 2022 Style: Morning Crypto Report XRP Officially Recognized as Non-Security in New SEC Guidance BTC/USDT Price Chart, Source: TradingView Why did Bitcoin go under the knife first? As soon as the data was released, investors switched to risk-off mode, and BTC is a litmus test of liquidity. If PPI beats expectations, the dollar will move higher and risk assets lower. It can now be said that the $74,000-$76,000 zone has turned into heavy resistance. Advertisement You Might Also Like Wed, 03/18/2026 - 12:50 XRP Sees 160% Tilt in Bull Bias Among Hyperliquid's Biggest Whales, Ethereum Open Interest Hits 'High-Risk' Levels, Bitcoin Decouples From Gold In 2022 Style: Morning Crypto Report By Gamza Khanzadaev There are still two FOMC meetings ahead, one of them today and another at the end of April. If the market had previously hoped for softer rhetoric, it is now more likely to see a hawkish turn from Jerome Powell at the podium. To sum up, markets are entering a phase of systemic risk. Rising producer prices will inevitably pass through to consumer prices, which may mean that inflation will remain elevated for longer. For Bitcoin optimists, this means one thing: an easy walk back to $100,000 and beyond will not happen. Advertisement #Bitcoin #inflation